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MGR:Conducting Domestic Roadshows re: AUD$500m Class 1 Notes

Document date:  Mon 21 May 2001
Published:  Mon 21 May 2001 13:46:55
Document No:  235450
Document part:  A
Market Flag:  N
Classification:  Other

MIRVAC GROUP                                  2001-05-21  ASX-SIGNAL-G

HOMEX - Sydney                                                        

The Mirvac Group today announced that it will be conducting domestic
roadshows for the proposed AUD$500m, AAA rated commercial
mortgage-backed securitisation issue ("Class 1 Notes").

The Class 1 Notes will be the largest commercial mortgage backed
securitisation ("CMBS") issue in the Australian capital market and
the largest single issue rated debt raising by an Australian listed
property trust. Mirvac had previously signalled its intentions to
issue a CMBS at the time the Group released its half-year results.

ANZ Investment Bank and Westpac Institutional Bank has been appointed
as Lead Managers for the issue, and Merrill Lynch International
(Australia) Limited has been appointed as the Co-Manager.

"The commercial mortgage-backed issue for Mirvac will allow it to
utilise the embedded value in its property portfolio to access a cost
effective source of funding," said Philip McEwen, Director, Corporate
Finance, Westpac Institutional Bank.

The transaction is supported by 25 quality properties of Mirvac
Property Trust and Mirvac Commercial Trust. The portfolio is
geographically diversified and includes properties across different

Mr Dennis Broit, Mirvac Group Finance Director said, "The purpose of
the transaction is to refinance Mirvac's existing debt funding which
will significantly reduce the cost of capital to the Group and
provide a longer term maturity for the Group's borrowing program.

"As an internally managed Group our primary objective is to continue
providing stable and growing returns for our investors. By
efficiently managing the costs of our business, and that obviously
includes the cost of our capital, we are able to effectively increase
our returns and achieve our objectives."

"The transaction will provide Mirvac with funding diversity by
accessing a broad range of institutional investors. At $500 million,
the issue will establish significant benchmark for a 5 year CMBS
issue," said Leanne Gordon, Director, Securitisation, ANZ Investment

The proposed transaction will be rated AAA by Standard & Poors' under
its commercial mortgage backed securitisation criteria. The AAA
rating is justified based on the quality of the 25 secured
properties, the strength of the underlying cashflows, the legal
integrity of the structure, the level of insurance coverage and the
liquidity support.

The Class 1 Notes are proposed to be 5 year soft-bullet securities.
In the event that the notes are not refinanced on the scheduled
maturity date, the notes will convert to monthly floating rate
pass-through securities with a step up coupon. The legal final
maturity date is 18 months from the scheduled maturity date.

Roadshows are scheduled for Sydney and Melbourne this week with the
issue launch expected to take place next week.


Dennis Broit                 Leanne Gordon
Mirvac Group                 ANZ Investment Bank
Ph: 612 90808433             Ph: 612 92271910

Philip McEwen
Westpac Institutional Bank
Ph: 612 92849219